Typically, US firms set up a representative office which, under Chinese law, are not permitted to engage in actual business activities, and are only allowed to make contacts and perform marketing functions. Although, in reality, many do actually engage in business activities.

In China, what is done in practice often differs from what is written as law. US companies need to be aware of these business practices and informal policies, to be able to work within China's grey areas, or they will not be able to operate competitively in China's markets.

In additional to legal issues before setting up a new company in China, one needs to also consider how tax, labor, finance, infrastructure, customs, money exchange, investment, and environmental issues may affect your new business.

DC Consultants can assist with the decision of what type of venture, if any, to set up in China: may it a Joint Venture (JV), Wholly Owned Foreign Enterprise (WOFE), Representative Office, Distributorship, Agents, Franchisee, or using a Licensee.

Once you have made a decision on what entity to set-up, we can assist you with the formalities to register your new company.